Finance and Performance
Committee
13
October 2017
Order
Paper for the meeting to be held in the
Council
Chambers, 2nd Floor, 30 Laings Road, Lower Hutt,
on:
Wednesday
18 October 2017 commencing at
5.30pm
Membership
Cr C
Milne (Chair)
Cr C
Barry (Deputy Chair)
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Deputy Mayor D Bassett
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Cr G Barratt
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Cr J Briggs
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Cr M Cousins
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Cr S Edwards
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Cr M Lulich
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Cr L Sutton
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Mayor W R Wallace (ex-officio)
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For
the dates and times of Council Meetings please visit www.huttcity.govt.nz
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FINANCE AND PERFORMANCE COMMITTEE
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Membership:
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10
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Meeting Cycle:
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Meets on a six weekly basis, as
required or at the requisition of the Chair
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Quorum:
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Half of the members
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Reports to:
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Council
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PURPOSE
To assist the Council
execute its financial and performance monitoring obligations and associated
risk, control and governance frameworks and processes.
Determine
and monitor:
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Maintain an overview of
work programmes carried out by the Council’s organisational activities
(excluding strategy and policy development).
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Progress towards achievement of the
Council’s objectives as set out in the LTP and Annual Plans.
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Revenue
and expenditure targets of key City Development Projects.
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The effectiveness of the internal audit, risk
management and internal control processes and programmes for the Council for
each financial year.
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The integrity of reported performance
information, both financial and non-financial information at the completion of
Council’s Annual Report and external accountability reporting
requirements.
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Oversight of external auditor engagement and
outputs.
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Compliance with Council’s Treasury Risk
Management Policy,
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Requests for rates remissions.
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Approval of overseas travel for both elected
members and officers.
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Requests for loan guarantees from qualifying
community organisations where the applications are within the approved guidelines
and policy limits.
Consider
and make recommendations to Council:
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The adoption of the budgetary parameters for the
LTP and Annual Plans.
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The approval of The Statements of Intent for
Council Controlled Organisations, and Council Controlled Trading Organisations, and monitoring progress against the Statements of
Intent.
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The adoption of the Council’s Annual
Report.
General:
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Any other matters delegated to the Committee by
Council in accordance with approved policies and
bylaws.
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Approval and forwarding of submissions on
matters related to the Committee’s area of
responsibility.
Finance and Performance Committee
Meeting
to be held in the Council Chambers,
2nd
Floor, 30 Laings Road, Lower Hutt on
Wednesday
18 October 2017 commencing at 5.30pm.
ORDER
PAPER
Public Business
1. APOLOGIES
Cr Barry
2. PUBLIC
COMMENT
Generally up to
30 minutes is set aside for public comment (three minutes per speaker on items appearing on the agenda). Speakers may be
asked questions on the matters they raise.
3. CONFLICT
OF INTEREST DECLARATIONS
4. Recommendations to Council - 18 October
2017
a)
Hutt
City Council Annual Report to 30 June 2017 (17/1424)
Report
No. FPC2017/4/249 (2) by the Corporate Planner 7
Chair’s Recommendation:
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“That the recommendations contained
in the report be endorsed.”
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b)
Report on UrbanPlus Limited for the Year Ended
30 June 2017 (17/1514)
Report No. FPC2017/4/250 (2) by the Chief
Financial Officer 11
Chair’s
Recommendation:
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“That the recommendation contained
in the report be endorsed.”
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5. Information Item
Hydrocarbon Discharges to stormwater
affecting Seaview Marina (17/1516)
Report
No. FPC2017/4/132 (2) by the Manager, Trade Waste 45
Chair’s Recommendation:
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“That the recommendation contained
in the report be discussed.”
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6. QUESTIONS
With reference to
section 32 of Standing Orders, before putting a question a member shall
endeavour to obtain the information. Questions shall be concise and in writing
and handed to the Chair prior to the commencement of the meeting.
Annie Doornebosch
COMMITTEE ADVISOR DEMOCRATIC SERVICES
Finance
and Performance Committee
18 September 2017
File: (17/1424)
Report
no: FPC2017/4/249
(2)
Hutt City Council
Annual Report to 30 June 2017
Purpose
of Report
1. The purpose of this report is for the Committee to consider Council’s
Annual Report and Annual Report Summary for the year ended 30 June 2017, and
recommend they are adopted by Council.
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Recommendations
That the Committee recommends
that Council:
(i) approves
the draft Annual Report and Annual Report Summary for the year ended 30 June
2017 attached as Appendices 1,2 and 3 to the report, both subject to
satisfactory resolution of the following outstanding items:
(a) completion of final edit checking;
(b) completion of any final audit adjustments; and
(c) receipt of final audit clearance;
(ii) notes that a public notice will be published in the Hutt News
advising of the availability of the Annual Report Summary attached as
Appendix 3 to the report, copies will be made available in the city’s
libraries, at the Customer Service Centre and on Council’s website,
copies will be posted to rural ratepayers who may not receive the Hutt News,
and an alert will be sent to our 1,500 e-newsletter subscribers; and
(iii) appoints
a subcommittee to sign off the final documents by 8 November 2017.
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Discussion
Annual Report
2. The
purpose of the Annual Report is to report on the achievement of targets
outlined in the Long Term Plan 2015-2025. The draft Annual Report is attached
as Appendices 1 to 2 of the report. Any significant amendments requested by the
auditors following publication of the order paper will be highlighted at the
meeting.
3. The
document has been structured around the rejuvenation of Hutt City in line with
our four key strategies and community outcomes.
4. The
Annual Report is complete, subject to final review following any changes
requested by Council and any final audit adjustments. The signed audit opinion
will be released once the Annual Report has been adopted by Council and the
final edit review completed.
5. Officers
from Audit New Zealand will be present at the Finance and Performance Committee
meeting to provide an update on the status of the audit.
Summary Annual Report
6. The
Annual Report Summary is attached as Appendix 3 of the report. If any
significant amendments are requested by the auditors following publication of
the order paper, updated copies will be tabled at the meeting.
Customer research
7. Providing
the best local government services is a priority for Council. To achieve this
we need to know how satisfied our customers are, how we can do better and what
is most important to our customers so we can prioritise and deliver better
value for the community. To answer these questions we changed our research
approach and provider in 2016-17.
8. While
the change in research approach has delivered the information we need to build
on the service Council already offers, it has meant the
2016-17 results in this Annual Report are not directly comparable to previous
years or targets. This has resulted in us not achieving some of the targets
sourced from customer research.
9. In
2016 in preparation for the change in research approach and provider we did two
separate resident surveys using the existing research provider (NRB) and the
new research provider (Key Research). The results from the NRB survey were
published in the 2015-16 Annual Report. As there is little difference in the
Key Research results between 2016 and 2017 this suggests the difference in
results is due to the change in research approach and provider rather than a
change in performance.
10. We
now have a strong research base for future years that will enable us to build
consistent tracking data. Performance measures and targets will be reviewed as
part of the 2018-2028 Long Term Plan process.
Legal
Considerations
11. The
Annual Report and Annual Report Summary have been prepared to meet the
requirements of the Local Government Act 2002.
12. The
Annual Report Summary must represent, fairly and consistently, the information
regarding the major matters dealt with in the Annual Report.
13. The
Local Government Act 2002 requires each Annual Report to be completed and
adopted by resolution within four months after the end of the financial year to
which it relates, i.e. by the end of October.
14. The
Local Government Act 2002 further requires that the Annual Report and Annual
Report Summary be made publicly available within one month of adoption.
Publicity
Considerations
15. As
in previous years, a segmented PDF online version of the Annual Report 2017
will be published on Council’s website.
16. A
public notice advising of the Annual Report’s Summary availability will
be published in the Hutt News. The Summary will be posted to rural ratepayers
who may not receive the Hutt News. Copies will also be made available in
Council’s libraries, at the Customer Service Centre and online at www.huttcity.govt.nz. An alert will be sent to the 1,500 e-newsletter subscribers who
have asked to be kept informed about annual plan-related information.
17. The
Local Government Act 2002 requires copies of both documents to be provided to
the Secretary, the Auditor General and the Parliamentary Library within one
month of adopting the Annual Report. A small number of copies of the full
Annual Report will be printed in-house for this purpose.
Financial
Considerations
18. The
cost of producing, printing and distributing the Annual Report and Annual
Report Summary is provided for within current budgets.
Other
Considerations
19. In
making this recommendation, officers have given careful consideration to the
purpose of local government in Section 10 of the Local Government Act 2002.
Officers believe that this recommendation falls within the purpose of local
government in that it meets the requirements as outlined in Part 3 of Schedule
10. It does this in a way that is cost-effective, publishing online with
a small print run.
Appendices
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No.
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Title
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Page
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1⇨
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Draft Annual Report 2016_17 (Under
Separate Cover)
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2⇨
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Statement of Financial Position with
Prudence Reporting 2016_17 (Under Separate Cover)
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3
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Annual Report Summary 2017 v7
(Under Separate Cover)
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Author: Josie
Askin
Corporate Planner
Reviewed By: Wendy Moore
Divisional Manager, Strategy and Planning
Approved By: Kim Kelly
General Manager, City Transformation
Finance and Performance Committee
02 October 2017
File: (17/1514)
Report
no: FPC2017/4/250
(2)
Report on UrbanPlus
Limited for the Year Ended 30 June 2017
Purpose
of Report
1. To provide the Committee with the Final Annual Report for Urban Plus
Limited for the year ended 30 June 2017.
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Recommendations
That the Committee recommends
that Council receives the Annual Report for Urban Plus Limited (UPL) for the
year ended 30 June 2017, attached as Appendix 1 to the report.
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Background
2. It
is a requirement of the Local Government Act 2002 that the Council Controlled
Organisations deliver to the shareholders an annual report on the
organisation’s operations. This report is presented to this
Committee for information.
3. A
draft UPL Annual Report was provided to this Committee at the meeting held on
27 September 2017. At that stage, the audit had not been concluded and it
was agreed at that meeting that the final UPL Annual Report including the audit
opinion be provided to this meeting.
Discussion
4. Audit
New Zealand has completed their audit work and has advised they will be issuing
an unmodified audit opinion. The audited Annual Report (without the audit
opinion) is attached as Appendix 1 to the report.
5. The
Annual Report will be signed and the audit opinion will be issued on 17 October
2017. A copy of the audit opinion will be tabled at the Committee
meeting.
6. Changes
made to the draft Annual Report previously provided have primarily been made to
comply with disclosure requirements. The Parent and Group surpluses
before taxation of $427k and $334k are unchanged.
Legal
Considerations
7. There
are no further legal considerations required.
Financial
Considerations
8. The
audit has concluded and Audit New Zealand will be issuing an unmodified audit
opinion.
9. The
final management letter has not yet been received.
Other
Considerations
10. In making
this recommendation, officers have given careful consideration to the purpose
of local government in section 10 of the Local Government Act 2002.
Officers believe that this recommendation falls within the purpose of the local
government in that it contributes to the achievement of current and future
needs of the community by providing an affordable service to the community.
Appendices
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No.
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Title
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Page
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1⇩
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Urban Plus Limited 2017 Annual Report
FINAL (unsigned)
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13
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Author: Brent
Kibblewhite
Chief Financial Officer
Approved By: Tony Stallinger
Chief Executive
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Attachment 1
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Urban Plus Limited 2017 Annual Report FINAL
(unsigned)
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Finance
and Performance Committee
02 October 2017
File: (17/1516)
Report
no: FPC2017/4/132
(2)
Hydrocarbon
Discharges to stormwater affecting Seaview Marina
Purpose of Report
1. This update was requested by the Finance and Performance Committee
at its meeting held on 27 September 2017. It notes efforts to trace
the contamination, efforts to remedy the discharges on two sites thus far
identified and steps to identify protective devices to guard against future
discharges within the Seaview catchment.
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Recommendation
That the report be noted and received.
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Background
2. As noted previously to the Committee, tracing contaminants
in this system is not straightforward given its tidal nature and the large size
of the catchment. On 27 September 2017 officers observed and sampled
a low volume black odorous (burnt oil smell) material discharging out the
1200mm stormwater (SW) pipe into the Marina. Officers had checked the Marina
earlier at 3pm (clear), then located and dug up a manhole upstream on the
railway land as a future check point. This identified to us that the material
had come from nearby and most likely from one of five or six sites. .
3. The
names of the sites identified as discharging contaminants of interest are not
included so as not to interfere with proper enforcement considerations between
Greater Wellington Regional Council (GWRC) and Council. Both sites so far
identified have been very cooperative and we expect improvements in the
discharge.
Discussion
Site 1
4. The next morning officers again checked the
final manhole on the 1200mm SW line. The manager of one of the local sites came
out to see us, we showed him one of the samples taken the day prior and he
immediately noted it was from the scrubber associated with their processing
plant. Increased production from around June has resulted in more wastes being
produced. The handling process for those wastes was flawed in that it relied on
the contaminants being taken care of in an oil trap. Unfortunately the contaminants
are not just oils, some are water miscible. Further, the discharge was to an
open area which will then have rain derived flows capable in heavy rain of
compromising the ability of the downstream oil trap to retain materials.
5. Note: Oil traps for tank farms or oil
installations discharge to stormwater, provided the interceptors are sized
appropriately and no water borne contaminants (e.g. antifreeze) and no
emulsifying agents are used, should have no contamination issues, e.g. the
interceptors on service stations all go to stormwater.
6. Remedial steps on this site include:
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Immediately redirecting the scrubber discharge
to storage rather than their trap. This action ceased any discharge of the
material to SW;
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Cleaning of the side drainage channels and
pipework, sumps to remove any residue. This has occurred with a contractor
removing the wastes;
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They are to develop a plan to cover other
protective measures needed;
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They had just installed equipment which would
have reduced clean valuable oil lost to their traps and hence available for
flushing by rain flows; and
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A Resource Management Act Advisory Notice has
been issued and discussions are occurring as to any further actions.
Site 2
7. On 21 September 2017 as part of tracking efforts
officers identified that there were spill containment issues on one of the
truck stops. The issues relate to user spills being either tracked off site by
tyres or carried over the narrow strip drain by rain flows. Once off the
protected (trapped) fill pad area there are routes for discharge to the
stormwater system in part due to ground settlement. The site has been very
cooperative, several meetings have occurred along with them seeking contractor
assistance. We have discussed carryover management and closure options until
works are completed.
Summary
8. Both of these sites will have caused issues for
an extended period; however one site will have created more issues recently as
a result of process changes. Neither site has, nor requires a Trade Wastes
Discharge Consent as there are no process discharges to sewer hence they are
infrequently visited. The fuel site would produce trace amounts of diesel
during rainfall. The other site will have until mid-September likely released
moderate volumes of fairly clean low odour oil along with occasional burnt oil
by-products primarily during rainfall events. The oil would likely readily mix
with diesel traces and give the appearance and odour of a moderate amount of
diesel. The occasional burnt oil like by-products would be likely to cause
offense and this may explain some of the odour complaints.
9. The discharges to the Marina have noticeably
improved since late-September. However it needs to be noted that the overall
discharge quality is dependent upon the behaviour of all of the people in the
catchment and there are likely to still be some issues and none of our tracking
efforts will make any difference to the litter in the SW system.
10. Enforcement options are open to GWRC and
Council. However, it needs to be noted that immediate action had
been taken to cease or mitigate the discharges. The business owners will
each be expending reasonable sums remedying their sites, they provided very
good cooperation and they were not aware of the issues they were contributing
to.
11. We have continued in our efforts to find
potential sources and also to better understand the network and some of its
features including the syphon under Seaview Road (by #61) as this feature acts
to some extent as a trap/delay in the system for some hydrocarbons and some
floatable litter. Discussions have begun with an appropriate supplier
(Stormwater 360) in an effort to identify devices (and associated costs) which
may assist in protecting the Marina from hydrocarbons and litter.
12. Costs and options for a suitable device or
devices is not known yet however officers should have some information after
discussions on 24 October 2017 with representatives of Stormwater 360.
Protecting the Marina is complicated by the tidal nature of the system and the
size of the catchment (52 hectares). In place of one device it may be more cost
effective to install several smaller devices which could then avoid the need to
treat what are clean water flows from the hill to the east.
13. The contaminants affecting the Marina discharge
are also present to varying degrees in discharges throughout the entire SW
network. The industrial areas tend to produce the greatest hydrocarbon and
heavy metal risks and the residential and commercial catchments the greatest
litter and cleaning activity related risks. The litter risks generally consist
of cigarette butts, food wrappers, foam cups and bottles discarded such that
they can wash into street sumps (often via the large storm opening in the
kerb). Kerbside recycling can also be a significant contributor to litter in
our streams particularly on wet windy days. Recycling bin nets help.
14. Options to produce better outcomes for our
streams, the river and the sea include education, treatment devices and
enforcement. Enforcement is the least effective option as the sources are too
dispersed, dischargers are often impossible to identify and the effort is
nearly always reactive – i.e. post harm. Education can assist. Officers
observations are that many residents and workers do not understand where SW
drains go or that their actions can cause harm. Many hold misconceptions
generated by product marketing, e.g. biodegradable detergents when the
detergent itself is harmful let alone the removed grime. Most people do not
want to cause harm to the environment and when made aware they usually change
their behaviours.
15. Treatment
options include litter basket type devices inserted into street sumps and much
larger devices on network piping intended to treat whole catchments. These
devices can be chosen to suit the contaminants of most interest at that
location. Costs will vary starting in the low hundreds for the litter baskets
and into the 10’s of thousands and beyond for the larger devices. As
noted previously costs will be better understood after the visit of one of the
suppliers. Some examples are below:
16. All of the treatment options come with
maintenance costs and care is needed to ensure that no upstream flooding issues
are created. Most of the newer designs cater well for elevated flows but none
cater for inadequate maintenance – e.g. failing to remove litter or
debris normally directed to a stream will cause a device to block.
17. In terms of locations there are some priority
locations we have identified over the years. The Marina, Hutt Park Road
(Waiwhetu stream), Waddington Drive (Naenae commercial centre outfall to the
Waiwhetu), Riddiford Gardens (Hutt CBD discharge). There are a number of sites
which would benefit from litter baskets perhaps negating the need for larger
treatment devices. Note: there was to be a device in the Riddiford Gardens
project but cost trimming saw it removed.
18. Currently anything which lands on a Council road
in rain or is present when it starts to rain stands a good chance of ending up
in our streams. There are available devices which could reduce the loading of
litter and hydrocarbons currently conveyed by our network to our streams and
the sea. They will also assist in GWRC’s pending Global SW Consent
process. They all come with purchase, installation and maintenance costs.
Currently the maintenance costs associated with litter and hydrocarbon removal
are limited by virtue of those materials being discharged to sea. The Hon Nick
Smith at the recent opening of Flight Plastics recycling plant noted that
“by 2050 there will be more plastic in the sea than fish”.
19. Council and GWRC officers are also continuing
their cooperative efforts to improve stormwater quality in Lower Hutt including
education efforts to contractors and residents, media items whenever possible,
joint visits, knowledge sharing and delegation of enforcement powers to Council
officers.
Appendices
There are no
appendices for this report.
Author: Gordon
George
Manager, Trade Waste
Reviewed By: Geoff Stuart
Divisional Manager, Regulatory Services and
Emergency Management
Approved By: Kim Kelly
General Manager, City Transformation
